Chipmaker Altera expects fourth-quarter sales to fall 8-10 percent
(Reuters) - Programmable chipmaker Altera Corp (ALTR.O) trimmed its fourth-quarter revenue expectation citing less orders for its older products, sending its shares down 2 percent after the bell.
The company now expects sales to decline 8 percent to 10 percent from the preceeding quarter, which would equate to about $450.5 million at the mid-point of the guidance. The company had earlier forecast a sales decline of 6 to 10 percent.
Analysts on average were expecting revenue of $455.2 million, according to Thomson Reuters I/B/E/S.
The broader macroeconomic environment continues to hurt its two biggest markets -- communications and military, Chief Executive John Daane said on a conference call detailing the company's mid-quarter update.
Altera, whose chips are used in everything from mobile phone towers to servers and routers, has seen revenue decline in the last five quarters as customers slash inventory and cut spending.
For fiscal 2013, the company expects gross margins in the 69 percent to 70 percent range.
Shares of Altera, which has a market value of about $10.33 billion, fell 2 percent after the bell. They closed at $32.18 on the Nasdaq on Tuesday.
(Reporting by Himank Sharma in Bangalore; Editing by Don Sebastian and Supriya Kurane)
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